A division, sometimes called a business sector or business unit (segment), is one of the parts into which a business, organization or company is divided.[1][2]
Divisions are distinct parts of a business. If these divisions are all part of the same company, then that company is legally responsible for all of the obligations and debts of the divisions.[1][3][4]
Subsidiaries are separate, distinct legal entities for the purposes of taxation, regulation and liability. For this reason, they differ from divisions, which are businesses fully integrated within the main company, and not legally or otherwise distinct from it.[6][7] The Houston Chronicle highlighted that the creation of a division "is substantially easier than developing subsidiaries. Because a division is an internal segment of a company, not an entirely separate entity, business owners create and end divisions at their whim. Also, because individuals in each division are employed by the same company, it's easier to modify staffing to fit with this setup".[8]
^"Differences Between Wholly Owned Subsidiaries & Divisions". SmallBusiness.Chron. Retrieved 17 March 2019.
^Picincu, Andra (August 10, 2020). "Business Organizational Structure Examples". Houston Chronicle. from the original on 2011-12-29. Retrieved 2021-10-11.
^"East West Bank Press Release First Quarter 2019". April 18, 2019.
^Lehman, Jeffrey; Phelps, Shirelle (2005). West's Encyclopedia of American Law, Vol. 9 (2 ed.). Detroit: Thomson/Gale. p. 387. ISBN9780787663742.
^Reed, Eric (February 12, 2019). "What Is a Subsidiary and What Do You Need to Know When Starting One?". TheStreet. from the original on 2021-01-31. Retrieved 2021-10-11.
^"Lateral Structural Arrangements in Organizations". Houston Chronicle. October 5, 2021. from the original on 2012-09-12. Retrieved 2021-10-11.
March 16, 2023
division, business, this, article, needs, additional, citations, verification, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, division, business, news, newspapers, books, sch. This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Division business news newspapers books scholar JSTOR February 2020 Learn how and when to remove this template message A division sometimes called a business sector or business unit segment is one of the parts into which a business organization or company is divided 1 2 Contents 1 Overview 1 1 Legal responsibility 2 See also 3 ReferencesOverview EditDivisions are distinct parts of a business If these divisions are all part of the same company then that company is legally responsible for all of the obligations and debts of the divisions 1 3 4 In the banking industry an example would be East West Bancorp and its primary subsidiary East West Bank 5 Legal responsibility Edit See also Subsidiary Subsidiaries are separate distinct legal entities for the purposes of taxation regulation and liability For this reason they differ from divisions which are businesses fully integrated within the main company and not legally or otherwise distinct from it 6 7 The Houston Chronicle highlighted that the creation of a division is substantially easier than developing subsidiaries Because a division is an internal segment of a company not an entirely separate entity business owners create and end divisions at their whim Also because individuals in each division are employed by the same company it s easier to modify staffing to fit with this setup 8 See also EditBrand SubsidiaryReferences Edit a b Longman business English dictionary Harlow Longman 2000 p 138 ISBN 9780582306073 Synthesis of Belactosin C Synfacts 2007 8 0789 2007 07 24 doi 10 1055 s 2007 968710 ISSN 1861 1958 Differences Between Wholly Owned Subsidiaries amp Divisions SmallBusiness Chron Retrieved 17 March 2019 Picincu Andra August 10 2020 Business Organizational Structure Examples Houston Chronicle Archived from the original on 2011 12 29 Retrieved 2021 10 11 East West Bank Press Release First Quarter 2019 April 18 2019 Lehman Jeffrey Phelps Shirelle 2005 West s Encyclopedia of American Law Vol 9 2 ed Detroit Thomson Gale p 387 ISBN 9780787663742 Reed Eric February 12 2019 What Is a Subsidiary and What Do You Need to Know When Starting One TheStreet Archived from the original on 2021 01 31 Retrieved 2021 10 11 Lateral Structural Arrangements in Organizations Houston Chronicle October 5 2021 Archived from the original on 2012 09 12 Retrieved 2021 10 11 Retrieved from https en wikipedia org w index php title Division business amp oldid 1131752175, wikipedia, wiki, book, books, library,
